Objections Flashcards
Tee up your HLP presentation.
Let me show you a great way to drive a new Honda and only pay for about 50% of the list price of the
vehicle. We call it the Honda
Leadership Plan!
Average trading cycle of customers?
36 Months.
What does GAP stand for?
Guaranteed Asset Protection.
Is GAP insurance free with the HLP?
No. The cost for GAP insurance is charged in the acquisition fee, but let
the customer know it is already included in the monthly payment.
What does GFV stand for?
Guaranteed Future Value.
What are the 4 great options you own at lease end?
- Trade it.
- Sell it.
- Drop it.
- Keep it.
Customer: “Knew somebody that got burned.”
“Under many of the old plans, customers were required to purchase the vehicle at the end of lease term. In many cases the purchase price was higher than the cars worth. With HLP you have a guaranteed drop off option. If the optional purchase price (GFV) is higher than the cars value, you simply give it back to Honda and they take the loss for you!”
Customer: “Concerned about mileage restrictions/penalties.”
Sales Pro: High mileage depreciates a cars value no matter how you pay for it. The Honda Leadership Plan allows you to customize the miles based on how you drive (miles are discounted).
Customer: “I keep a vehicle a long time.”
Sales Pro: With the HLP it doesn’t matter if you keep the Honda 5, 10 or 15 years, it’s just a better way to pay for it until you’re sure you want to own it long term.
Customer: “Concerned about wear and tear penalties.”
Sales Pro: Honda realizes that if they are going to retain your business long term they cannot put you in a plan that penalizes you in the end. The HLP allows for normal wear and tear and includes at no additional charge an excess wear and tear waiver. This wear and tear waiver covers damage up to $500 or $1000 if the customer purchases another Honda.
Customer: “What if I wreck it?”
Sales Pro: Your insurance company covers it and repairs it. No difference than if you had the car financed with a bank and it was wrecked. Honda includes GAP insurance with every HLP and in the event the vehicle is totaled and the insurance settlement is less than the payoff, the GAP insurance will pay the difference and your loan is paid in full.
Customer: “They don’t feel like they own anything.”
Salesperson: Under the Honda Leadership Plan (HLP) ownership is an option, not an obligation. Instead of committing to 5, 6 or 7 long years, you only have a short 3 year agreement. At the end of 3 years, if you love the car, complete the purchase for the amount you didn’t pay for in the beginning.
If the GFV is $15,000 and the appraised values at lease end is $16,000 what should the salesperson suggest the customer do with the extra $1,000?
Apply the equity.
What is equity?
The monetary value of something beyond any amount owed.
On the drop it section on the HLP board, what should I tell customers is the primary reason I would use this option?
“This rarely happens, but if market conditions change beyond your control, beyond Honda’s control and the vehicle in not worth the GFV, simply drop it off and Honda takes the loss, not you!”
